Near Field Communication - Research Study with IP Analysis & Mapping - Legal Advantage

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Near Field Communication
Research Study with IP Analysis & Mapping

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Contents

  •   Introduction

  •   History

  •   Patent analytics

  •   Market

  •   Litigations

  •   License agreements

  •   Applications

  •   Key components

  •   Alternatives

  •   Patent Analysis - Strategy

                                   2
NFC - Near Field Communication

  Near field communication (NFC)
  •   Two compatible devices with in a distance of four to five centimeters to exchange data and share
      information using electromagnetic radio fields; contrary to far field communication which operates
      across great distances

  Working
  •   For two devices to communicate using NFC, one must have NFC reader/writer and the other must
      have an NFC tag.
  •   First device sends out radio frequency signals that interact with an NFC tag found in compatible
      second device
  •   The signal creates a current that flows through the NFC tag and allows the device and the tag to
      communicate with one another.
  •   A device with NFC reader can also have a NFC tag to send information and similarly a device with
      NFC tag can also have a NFC reader to read the information.

                                                     3
Timeline

         •   First patent (WO9723060) assigned to Andrew White and Marc Borrett
  1997

         •   Technical outline created by Sony and Philips
  2002

         •   ISO/IEC standard and ECMA standard
  2003

         •   Nokia, Philips and Sony established the NFC Forum
  2004

         •   NFC for mobile phones
  2010

         •   Google I/O demonstrated "How to NFC“ to show how to share a game, a contact,
  2011       URL, app or video

         Source: https://en.wikipedia.org/wiki/Near_field_communication

                                                          4
Timeline continued

           •    Paypass service by MasterCard for research in motion devices
   2011

           •    NFC-enabled smartposter by UK restaurant chain EAT and Everything Everywhere
  2012

           •    Samsung and VISA announced their partnership to develop mobile payments
  2013     •    Softcard mobile wallet by AT&T, Verizon and T-Mobile.

           •    Apple pay
  2014

           •    Google’s Android Pay
  2015

          Source: https://en.wikipedia.org/wiki/Near_field_communication

                                                           5
Patent Analysis – Strategy

                             6
Key components of NFC

      Component        Description

      Tag              Device for storing information

      Reader           Device for reading information from tag

      Antenna          Device for transmitting/receiving data

      Controller       Device for controlling communication between NFC devices

      Secure element   Device for securing user information, e.g. credit card data

                                           7
Patenting Activity - Publication trend

   •    Publications have seen an exponential growth in the recent years.
   •    In 2016, 8467 patent families have been published.
                                                                            8467

                                                                  7793

                                                           6106

                                                4157

                                        2159

                               1136
                        967
               764
       573

       2008    2009    2010    2011     2012    2013       2014   2015      2016

                                                       8
Patenting Activity – Major players

   •    Samsung holds majority of the patent families in the application area of NFC, followed by Sony
   •    Broadcom, NXP, Qualcomm hold patents related to manufacturing methods of NFC controller,
        NFC antenna, secure elements etc.

                                                                                               624

                                                                                     339

                                                                  264      265
                                             232       235
                188      197       199
       175

   Google Inc NXP BV Blackberry Qualcomm ZTE Corp Research Canon Inc Sony Corp     LG      Samsung
                        Ltd        Inc            In Motion                    Electronics Electronics
                                                     Ltd                         Co Ltd      Co Ltd

                                                              9
Patenting Activity - Geographical Distribution

    Code             Country
     AU              Australia
     IN                India
     CA               Canada
     DE              Germany
     JP                Japan
     EP               Europe
    WO              WIPO/PCT
     KR                Korea
     US      United Stated of America
     CN                China

  Majority patents are filed in China, Asia appears to be growing fast in NFC domain followed by USA,
  Europe, Canada and Australia. Surprisingly Great Britain is not in top 10.

                                                      10
Patenting Activity - Top CPC codes

   2500
                                                 2114
   2000
                                                         Patents with NFC communication are
   1500
                                                         highest followed by patents with
                                          1046
                             955
   1000             826                                  mobile payments using NFC.
          577
    500

      0

          Class                    Definition              Class               Definition

     H04W 4/008       Using short range communication, H04W 12/06      Authentication
                      e.g. NFC, RFID or PAN

     G06Q 20/3278     RFID or NFC payments by means H04M 1/7253        Using a two-way short-
                      of M-devices                                     range wireless interface

     H04B 5/0031      For data transfer

                                                    11
Sample patent analysis

                         12
Major players and Market forecast

  •   As of 2013, NXP dominates the NFC chip
      market with a market share of 59 percent.
  •   Broadcom accounts for one-third of the
      market.

  •   The global near field communication                         60

                                                                                                                                       47.7
      (NFC) market size was valued at USD                         50
                                                                                                                                38.4
      4.80 billion in 2015 and expected to reach                  40
                                                                                                                         32.5
      close to USD 50 billion in 2024.                            30                                                26
                                                                                                             21.8
                                                                  20                                  16.6
                                                                                               12.5
                                                                                         9.8
                                                                                   7.7
  •   The decreasing prices of NFC chips and                      10
                                                                       3.5   4.8

      growing in huge increase mobile phone                        0
                                                                       2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
      transactions are some of the major factors
      driving the NFC market around the world.

          Source: https://www.reference.com/business-finance/lucrative-nfc-companies-b59ad89479503d7b#
          http://www.grandviewresearch.com/industry-analysis/near-field-communication-nfc-market

                                                                 13
Recent patent litigations and licensing

  •   In January 2015, NXP Semiconductors has filed a patent infringement suit against rival chip
      maker Marvell, claiming that the NFC chips supplied by Marvell to Microsoft for use in the Xbox
      One video gaming console infringe four of NXP patents.

  •   The patents-in-suit are US Patent Numbers 5,939,791; 7,039,133; 8,185,050; and 8,203,432

  •   On November 14th, 2016, France Brevets Licensed NFC Patents to HTC

  •   In May 2016, France Brevets Licensed NFC Patents to Samsung

  •   In March 2016, France Brevets Licensed NFC Patents to Sony

  •   In 2014, France Brevets Licensed NFC Patents to LG.

          Source: https://www.nfcworld.com/2015/01/28/333758/nxp-sues-marvell-xbox-nfc-chips/

                                                                   14
Applications – Digital payment and NFC tags

  NFC for Payment
  •   Point of Sale
  •   Google, Microsoft, Facebook and Apple are investing heavily in
      NFC technology. Google Wallet and Apple’s implementation of
      tap-to-pay technology in its iPhones through Apple Pay are a
      boost to online transactions using NFC.
  •   Payment systems based on NFC are more secure and seen as         Source: http://www.nxp.com

      potential replacement for credit cards.

  NFC for Business
  •   Brand protection
  •   Smart Media & Products
  •   Smart manufacturing
  •   Smart advertising

                                                                       Source: http://www.nxp.com

                                                   15
Applications – Security and Internet of Things (IoT)

  NFC for Identification
  •   E-locks
  •   User identification (This can replace ID cards and
      passports)
  •   eGovernment

                                                           Source: http://www.nxp.com
  NFC for Home appliances and entertainment
  •   Board games, video games, smart toys
  •   PCs and laptops
  •   Set-top box
  •   Appliances

                                                           Source: http://www.nxp.com

                                              16
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